Private Equity Firms

Does anyone know how does working for private equity firms work out in terms of salary etc. Are private equity firms like Hedge Funds charging a percent of the profits or they just get 1-2% of the assets under management. Are partners like Hedge Fund managers who earn more if they return more on investments. Thanks to all the inputs.

The only thing I know is that a good friend of mine that I went to college with works for a very big PE firm in NY. He works sick hours, probably one of the smartest guys I know, and judging by the apartment he recently purchased I'd say he's bringing home anywherebetween $2-3million a year. He's 33.

Does anyone know how does working for private equity firms work out in terms of salary etc. Are private equity firms like Hedge Funds charging a percent of the profits or they just get 1-2% of the assets under management. Are partners like Hedge Fund managers who earn more if they return more on investments. Thanks to all the inputs.

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PE firms are very much like hedge funds in that regard. They charge a management fee in the neighborhood of 2%, and are incentivized by carried interest (performance based compensation usually in the neighborhood of 20%) OTOH, I suppose your arrangement in working for one could dictate that you work for a locked salary.

In any case, a PE firm is not much different than a hedge fund. They simply make money differently. PE firms deal in private entities, whereas HFs deal in public.